urgent Consider a horizontal merger. A Cournot modeland monopoly with a fringe come to very differentconclusions.Part a) Why do the two models come to suchdifferent conclusions? Part b) Connect the models to the real world.When would the Cournot model be morerepresentative? When would monopoly with afringe be more representative?

The Cournot model is an economic model used to analyze competition between firms in an oligopoly…

Answered: Consider a horizontal merger. A Cournot…

Consider a horizontal merger. A Cournot model and monopoly with a fringe come to very different conclusions. Part a) Why do the two models come to such different conclusions?

MACROECONOMICS FOR TODAY

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Chapter1: Introducing The Economic Way Of Thinking

Section: Chapter Questions

Problem 18SQ

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Question

urgent

Consider a horizontal merger. A Cournot model
and monopoly with a fringe come to very different
conclusions.
Part a) Why do the two models come to such
different conclusions?

Part b) Connect the models to the real world.
When would the Cournot model be more
representative? When would monopoly with a
fringe be more representative?

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